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Using Image inside a Swing GUI

1) How should they be stored, is it preferable to have the image hard-coded into code or as a seperate file?

2) How can you place them onscreen? At the moment I'm trying to do something as simple as making an "About" box with an image on the left and a bit of jLabel text on the right, however the image seems to get overlayed on top of everything else hence not obeying layout rules and covering up the text even though they are tied to different jPanels.